NO2-C PLEASE

1. From your point of view, why inventory is importance for every industry including aviation industry? (1%) 2. U&D is a company which produces all kinds of bags. Bud Denny, the president of U&D, is worried about the production policy for the company's bestselling women's bag. The production capacity is 400 units per day. The annual demand for this has been about 15,000 units each year, and this demand has been constant throughout the year. Each time production starts, it costs the company $220 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $60 per year. The current production plan calls for 300 refrigerators to be produced in each production run. Assume there are 250 working days per year. (a) What is the daily demand of this product? (1%) (b) Under the current policy, how many productions runs per year would be required? (1.5%) (c) If the current policy continues, how many bags would be in inventory when production stops? What would the average inventory level be? (1.5%)